A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Building (Property Development and Management), Johannesburg, 2017 / In 2013 new legislation was introduced allowing for the creation of a new listed property entity called a Real Estate Investment Trusts (REIT). Previously the listed property sector was dominated by two main types of property which were Property Unit Trusts (PUT) and Property Loan Stock Companies (PLS). The introduction of the REIT entity allowed existing listed property companies to convert to REIT status and for new companies to list on the Johannesburg Stock Exchange as REITs. The purpose of this study is to evaluate the impact of REIT implementation and the conversion of PLS and PUT to REIT status on shareholder wealth in South Africa. The study evaluates the change in shareholder wealth through the use of abnormal return calculations during events that led up to the implementation of REITs and conversion to REIT status. The findings show that implementation and conversion to REITs did not result in significant industry gains in shareholder wealth. The events leading to the implementation of REITs however showed positive abnormal returns out lining positive sentiments in the market. For the companies that converted to REIT status their shareholder wealth had negative performance returns. Immediate gains in shareholder wealth are not present. This indicating that the use of REITs as an investment will have to be monitored in the long term. / XL2018

This study explores the policy implications of Real estate Investment Trusts on urban restructuring and attempts to uncover if monitoring and evaluating mechanisms are needed. This issue is relevant to South Africa for competing globally and domestically for real estate investment. Furthermore it is relevant to South Africa given the potential impact of unregulated property development and the implications for the poor. The study also investigates the implications of REIT investing over all types of property types and implications for spatial policy proposals / Thesis (M.Dev.Studies)-University of KwaZulu-Natal, Durban, 2009

Thesis (MAcc)--University of Stellenbosch, 2009. / AFRIKAANSE OPSOMMING: Met die bekendstelling van kapitaalwinsbelasting in 2000 was belastingpligtiges en belastingadviseurs bekommerd oor die invloed daarvan op belasting- en boedelbeplanning. Om die volle impak daarvan te verstaan moet die werking van kapitaalwinsbelasting ondersoek word. Paragraaf 10 van die Agste Bylae definieer die belasbare kapitaalwinste vir die jaar van aanslag. Hiervolgens word kapitale winste in die hande van verskillende belastingpligtiges teen verskillende “koerse” belas. In die algemeen word daar na Paragraaf 10 verwys as die insluitingsartikel wat op kapitaalwinste van toepassing is. Aangesien slegs ‘n “gedeelte” van kapitaalwinste onderhewig is aan normale belasting is een van die grootste faktore in die huidige belastingomgewing steeds om te onderskei tussen inkomste van ‘n kapitale of nie-kapitale aard. Deur die toepassing van Paragraaf 10 word kapitaalwinste gerealiseer deur Trusts en Maatskappye teen hoër koerse belas, as in die geval van individue. Dit het tot gevolg dat belastingpligtiges en belastingadviseurs die gebruik van trusts as ‘n effektiewe hulpmiddel vir boedelbeplanning begin bevraagteken het. Die effektiewe belastingkoers van toepassing op kapitaalwinste gerealiseer deur individue is egter die laagste van al die verskillende belastingpligtiges. Wanneer ‘n individue te sterwe kom is sy boedel onderhewig aan boedelbelasting, wat ‘n verdere belasting las tot gevolg het. Indien ‘n trust effektief toegepas word tydens die opstel van ‘n boedelplan vir ‘n individu sal die bates van die trust nie onderhewig wees aan boedelbelasting nie. Deur die verskeie opsies wat beskikbaar is vir ‘n belastingpligtige, wanneer hy ‘n besluit moet neem watter beleggingsvoertuig hy moet gebruik vir die belegging, kan die effektiewe belastingkoerse vergelyk word. Deur die uitkomste van die verskeie opsies teenoor mekaar te vergelyk bewys dit dat indien ‘n trust korrek aangewend word, dit steeds as ‘n effektiewe hulpmiddel in ‘n boedelplan kan aangewend word. Tydens die uitvoer van die vergelyking van die verskillende opsies wat vir die belastingpligtige beskikbaar is, is die tydwaarde van geld buite rekening gelaat. Indien die lewensverwagting van ‘n individu in berekening gebring word kan die uitkoms van die vergelyking moontlik anders wees. Deur dit alles in ag te neem bevestig dit weereens dat elke individue se boedelplan uniek sal wees indien sy persoonlike finansiële omstandighede in ag geneem word. / ENGLISH ABSTRACT: With the introduction of capital gains taxation in 2000, taxpayers and their advisors feared the impact thereof on tax planning and estate planning. To determine the impact thereof the taxation of capital gains must be understood. Paragraph 10 of the Eight Schedule define the taxable portion of capital gains for the year of assesment. Paragraph 10 is also commonly known as the inclusion clause applicaple on capital gains. This application of paragraph 10 has the effect that capital gains realised by different types of taxpayers are taxed at different rates. Due to the application of paragraph 10 only a portion of the capital gain realised by the taxpayer is subject to normal taxation. Therefor one of the biggest concerns for taxpayers still is to determine if income are of a capital nature or not. The inclusion rate, according to paragraph 10, applicable on capital gains realised by trusts and companies is higher than that of a individual and gives rise to a bigger tax burden relating to capital profits for trusts and companies. Therefor taxpayers and their advisors doubt wether a trust could still be used as an effective tool for estate planning. The effective tax rate on caiptal gains for individuals is the lowest for all types of taxpayers. But when an individual dies his estate is subject to estate duty, which leaves an additional burden for an individual to take into account. When a trust is effectively utilised in preparing an estate plan for an individual, the assets of the trust should not be subject to estate duty. By evaluating the effective tax rates applicable to the different options available to a taxpayer when he needs to determine which investment vehicle to use when making an investment, a comparision can be made. By comparing the effective tax rates a conclusion can be drawn that a trust can still be used as an effective tool for estate planning when utilised properly. When the comparison was made the time value of money was ignored. If the life expectancy of a individual are taken into account the outcome could be different. When everything is taken into consideration the conclusion is that the estate plan for every individual is unique and determined by his or her personal financial circumstances.

Thesis (MPA (Public Management and Planning))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The South African (SA) government is experiencing problems with regard to its service delivery mandate in public institutions. These problems have resulted from a number of factors, such as SA’s history of unequal distribution of resources; the introduction of remedial legislations and programmes when the new government took office in 1994; incorrect implementation of these legislations and programmes with the accompanying departure of skilled managers accompanied by the influx of new and inexperienced managers. Deliberate interventions were introduced to address this service delivery problem however, many public institutions remain unsuccessful in fulfilling their mandate to service delivery. In this study, the Government Employees Pension Fund (GEPF) is used as a case study to learn more about the effect of corporate governance in addressing service delivery problems in public institutions. As a government entity, the GEPF experienced some service delivery problems with regard to its mandate. Like any other public entity in SA, the GEPF is governed by all legislative provisions governing public entities and is equally affected by challenges such as scarcity of resources (financial; equipment and skills). The objectives of the study is to identify major principles and techniques related to corporatisation as an approach to management practice; to identify major challenges encountered by GEPF prior to corporatisation; and to analyse the deployment of corporate arrangements in the conduct of the GEPF in relation to these techniques and principles. The basis of this research is a thorough literature study and interviews with managers of the GEPF. The major finding of this study is that the GEPF has entrusted basic duties and responsibilities affecting its mandate to employer institutions (EIs). These basic yet sensitive functions have been left arbitrarily to EIs, hence the GEPF is unable to execute its duties in its benefits administration in line with its vision. Other findings include internal processes are incorrectly applied, thus hampering effective and efficient benefits administration; there is lack of, or limited use of a performance management system; there is an inability to deal with predictable problems; and the organisation of resources does not support the vision of the GEPF. Achievements in terms of the corporatisation process to improve performance were noted. The enrolment of the services of consultants to assist the GEPF to improve its performance led to the following: approval of the organisational structure that supports the GEPF’s vision; empowerment of managers in terms of skills capacity; conversion of contract workers to permanent; and taking an aggressive approach to performance and risk management. It is therefore concluded that although challenges still exist, the GEPF has embarked on a systematic process to rid itself of the challenges it faces. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse Owerheidsektor ervaar tans probleme ten opsigte van sy diensleweringsmandaat. Die probleme met swak dienslewering kan toegeskryf word aan faktore soos Suid-Afrika se geskiedenis van wat betref die onbillike verdeling van hulpbronne, die daarstel van ʼn nuwe regering in 1994 wat gelei het tot regstellende wetgewing en programme, die onoordeelkundige implementering van hierdie nuwe wetgewing en programme, en die gepaardgaande verlies van bekwame bestuurders en die aanstelling van nuwe en onervare bestuurders. Ten spyte van doelbewuste ingrypings om die diensleweringprobleem aan te spreek, bly owerheidsinstellings steeds in gebreke om aan hul diensleweringsmandaat te voldoen. Die Government Employees Pension Fund (GEPF) is as ʼn gevallestudie gebruik om die effek van korporatiewe bestuur op die hantering van diensleweringsprobleme in owerheidsinstellings te bepaal. Die GEPF as ʼn owerheidsinstelling ervaar ook probleme wat sy mandaat van dienslewering betref. In vergelyking met ander owerheidsinstellings ervaar die GEPF soortgelyke uitdagings ten opsigte van hulpbronverdeling (op finansiële vlak, en wat toerusting en vaardighede betref). Die doelwit van die studie is om die hoofbeginsels en -tegnieke verbonde aan korporatisering as ʼn bestuursbeleid te identifiseer, om die hoofuitdagings vir die GEPF voor intervensie op ʼn objektiewe en onbetrokke wyse te identifiseer, en om die tegnieke en beginsels aangewend sedert die implementering van die intervensie te analiseer. Hierdie studie is op ʼn deeglike literatuurstudie en die voer van onderhoude met bestuurslede van die GEPF geskoei. Die vernaamste bevinding van die studie is dat die GEPF sy basiese verpligtinge en verantwoordelikhede rakende sy mandaat aan die werkgewersinstellings toevertrou. Die basiese, dog sensitiewe funksies wat arbitrêr aan die werkgewer oorgelaat word, kniehalter die GEPF om sy administratiewe pligte volgens sy visie uit te voer. Ander bevindings sluit in dat interne prosesse op ʼn ondoeltreffende manier toegepas word, wat dan doeltreffende administrasie kortwiek. Dit sluit in die gebrek of beperkte gebruik van ʼn prestasiebestuurstelsel, die onbevoegdheid om ooglopende probleme te identifiseer en beperkte hulpbronne, wat nie die visie ondersteun nie. Die aanwending van korporatiewe prosesse om dienslewering te verbeter blyk suksesvol te wees. Die aanstelling van konsultante om behulpsaam te wees met dienslewering het gelei tot die goedkeuring van ʼn organisatoriese struktuur wat die visie van die GEPF ondersteun, die bemagtiging van bestuurders omdat hul vaardigheid verbeter is, die aanstelling van kontrakwerkers in permanente poste en ʼn aggressiewe benadering tot prestasie- en risikobestuur. Die gevolgtrekking is dat alhoewel daar nog uitdagings bestaan, die GEPF ʼn sistematiese proses onderneem het om die uitdagings te oorkom.

Thesis (MComm)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: On 1 July 2011 the revised version of Regulation 28, which governs the South African pension fund industry with regard to investments, took effect. The new version allows for pension funds to invest up to 25 percent compared to 20 percent, in the previous version, of its total investment in foreign assets. The aim of this study is to determine whether it would be optimal for a South African pension fund to invest the full 25 percent of its portfolio in foreign assets. Seven different optimization models are evaluated in this study to determine the optimal asset mix. The optimization models were selected through an extensive literature study in order to address key optimization issues, e.g. which risk measure to use, whether parametric or non parametric optimization should be used and if the Mean Variance model for optimization defined by Markowitz, which has been the benchmark with regard to asset allocation, is the best model to determine the long term asset allocation strategies. The results obtained from the different models were used to recommend the optimal long term asset allocation for a South African pension fund and also compared to determine which optimization model proved to be the most efficient. The study found that when using only the past ten years of data to construct the portfolios, it would have been optimal to invest in only South African asset classes with statistical differences with regard to returns in some cases. Using the past 20-years of data to construct the optimal portfolios provided mixed results, while the 30-year period were more in favour of an international portfolio with the full 25% invested in foreign asset classes. A comparison of the different models provided a clear winner with regard to a probability of out performance. The Historical Resampled Mean Variance optimization provided the highest probability of out performing the benchmark. From the study it also became evident that a 20-year data period is the optimal period when considering the historical data that should be used to construct the optimal portfolio. / AFRIKAANSE OPSOMMING: Op 1 Julie 2011 het die hersiene Regulasie 28, wat die investering van Suid-Afrikaanse pensioenfondse reguleer, in werking getree. Hierdie hersiene weergawe stel pensioenfondse in staat om 25% van hulle fondse in buitelandse bateklasse te belê in plaas van 20%, soos in die vorige weergawe. Hierdie studie stel vas of dit werklik voordelig sal wees vir ‘n SA pensioenfonds om die volle 25% in buitelandse bateklasse te belê. Sewe verskillende optimeringsmodelle is gebruik om die optimale portefeulje te probeer skep. Die optimeringsmodelle is gekies na ’n uitgebreide literatuurstudie sodat van die sleutelkwessies met betrekking tot optimering aangespreek kon word. Die kwessies waarna verwys word sluit in, watter risikomaat behoort gebruik te word in die optimeringsproses, of ‘n parametriese of nie-parametriese model gebruik moet word en of die “Mean-Variance” model wat deur Markowitz in 1952 gedefinieer is en al vir baie jare as maatstaf vir portefeulje optimering dien, nog steeds die beste model is om te gebruik. Die uiteindelike resultate, verkry van die verskillende optimeringsmodelle, is gevolglik gebruik om die optimale langtermyn bate-allokasie vir ‘n Suid-Afrikaanse pensioenfonds op te stel. Die verskillende optimeringsmodelle is ook met mekaar vergelyk om te bepaal of daar ‘n model is wat beter is as die res. Vanuit die resultate was dit duidelik dat ’n portfeulje wat slegs uit Suid-Afrikaanse bates bestaan beter sal presteer as slegs die laaste 10-jaar se data gebruik word om die portefeulje op stel. Hierdie resultate is ook in meeste van die gevalle bevestig deur middel van hipotese toetse. Deur gebruik te maak van die afgelope 20-jaar se data om die portefeuljes op te stel, het gemengde resultate gelewer, terwyl die afgelope 30-jaar se data in meeste van die gevalle ’n internasionaal gediversifiseerde portefeulje as die beter portefeulje uitgewys het. In ’n vergelyking van die verskillende optimeringsmodelle is die “Historical Resampled Mean Variance” model duidelik as die beter model uitgewys. Hierdie model het die hoogste waarskynlikheid behaal om die vasgstelde maatstafportefeuljes uit te presteer. Die resultate het ook gedui op die 20-jaar periode as die beste data periode om te gebruik as die optimale portfeulje opgestel word.

Many South Africans may not have adequate retirement savings when they retire and this has the effect of a low income replacement ratio on retirement that may lead to a decrease in the standard of living of the retiree and in extreme cases the retiree becoming dependent on their family and the government. Owing to this trend of no or inadequate retirement savings, South Africa embarked on a retirement reform journey in 2004. The goal of this research is to determine whether the retirement reform mechanisms outlined by National Treasury would encourage individual retirement savings that should assist South Africans to achieve stability of income in their retirement. This research analysed the current retirement savings options and vehicles available for South Africans, the current tax incentives and disincentives and reviewed the proposed changes to tax incentives and disincentives during the accumulation phase of retirement savings and explained how these proposed tax incentives are harmonised for the accumulation phase of retirement. The research explained how National Treasury aims to limit pre-retirement withdrawals and how it intends to encourage the annuitisation of post-retirement benefits. The penultimate chapter of this research measured the effect (by making certain assumptions) of the changes proposed by National Treasury on the income replacement ratio of the retiree. Throughout the research comparisons were made between The OECD Roadmap for the good design of defined contribution pension plans and National Treasury’s proposals. This research did not directly address the effect of increased life expectancies on retirement savings or increases in youth unemployment and the effect that this may have on retirement savings. The effect of financial charges levied on retirement savings on the income replacement ratio of a retiree was also not explored. Furthermore, not all pension funds are regulated by the Pension Funds Act and how these pension funds can be brought within the purview of the Pension Funds Act was not investigated. Automatic enrolment of retirement savings for all employees in South Africa in retirement vehicles is a further research area that could be addressed.

Between 1980-2006, thousands of South African pension funds converted members from defined benefit to defined contribution structures. This research set out to answer the questions of why this phenomenon occurred and whether peculiar environmental circumstances influenced the outcome. The research framework identified various stakeholders in the retirement fund industry - government; regulator; pension fund adjudicator; ombudsman for long term insurance; trade unions; members; trustees; business; employers and service providers - and isolated the elements to be considered in the research. Industry experts were interviewed to obtain a macro view of the phenomenon and specific manifestations of the phenomenon were also considered in case studies. The purpose of the research was to develop a model for managers to assist them in dealing with environmental change. Qualitative research methodology was utilised and feedback from semi-structured interviews was categorised into several emergent themes. Within-case and cross-case analyses were conducted. Research results indicate that the conversion phenomenon occurred in two waves - one initiated in the 1980s and driven by the trade unions and a second in the 1990s, driven by employers, often at the advice of their consultants. Evidence of the start of a third wave also emerged. Results indicate that an environmental shock exerted a substantial influence on the course of events. Under these:  Various factors combined to drive organisational evolution (i.e. adaptation to the environment).  Adaptation speed was inappropriate and exceeded that which was required for sufficient thought.  Uncertainty and vacuum circumstances arose leading to consequences that require redress.  The power of the relative stakeholders changed and influenced the strategic outcome.  An imbalance in stakeholder interests arose and ethical factors became consequential.  Business acted to restore certainty for itself. Existing literature explained organisational behaviour in environments of competitive shock and high turbulence, but not in circumstances of environmental shock. A model emerged to assist managers to deal with environmental change, which was applied to an analysis of pension fund reform. It was also applied to the pension fund perspective on Broad-Based Black Economic Empowerment. This model may also be applied in analysis of land redistribution, sanctions and constitutional development. / Business Management / DBL

Between 1980-2006, thousands of South African pension funds converted members from defined benefit to defined contribution structures. This research set out to answer the questions of why this phenomenon occurred and whether peculiar environmental circumstances influenced the outcome. The research framework identified various stakeholders in the retirement fund industry - government; regulator; pension fund adjudicator; ombudsman for long term insurance; trade unions; members; trustees; business; employers and service providers - and isolated the elements to be considered in the research. Industry experts were interviewed to obtain a macro view of the phenomenon and specific manifestations of the phenomenon were also considered in case studies. The purpose of the research was to develop a model for managers to assist them in dealing with environmental change. Qualitative research methodology was utilised and feedback from semi-structured interviews was categorised into several emergent themes. Within-case and cross-case analyses were conducted. Research results indicate that the conversion phenomenon occurred in two waves - one initiated in the 1980s and driven by the trade unions and a second in the 1990s, driven by employers, often at the advice of their consultants. Evidence of the start of a third wave also emerged. Results indicate that an environmental shock exerted a substantial influence on the course of events. Under these:  Various factors combined to drive organisational evolution (i.e. adaptation to the environment).  Adaptation speed was inappropriate and exceeded that which was required for sufficient thought.  Uncertainty and vacuum circumstances arose leading to consequences that require redress.  The power of the relative stakeholders changed and influenced the strategic outcome.  An imbalance in stakeholder interests arose and ethical factors became consequential.  Business acted to restore certainty for itself. Existing literature explained organisational behaviour in environments of competitive shock and high turbulence, but not in circumstances of environmental shock. A model emerged to assist managers to deal with environmental change, which was applied to an analysis of pension fund reform. It was also applied to the pension fund perspective on Broad-Based Black Economic Empowerment. This model may also be applied in analysis of land redistribution, sanctions and constitutional development. / Business Management / DBL

This work entails a study of some of the schemes that are employed by country residents when companies and trusts are used as vehicles for investing in offshore tax-haven and low tax jurisdictions so as to avoid taxes. The study also entails a critical analysis of the effectiveness of the some of the laws in South Africa that curb such offshore tax avoidance schemes. Similar laws in the United Kingdom and in the United States are analysed in order to come up with some recommendations that could be considered for possible reform of the relevant South African laws where they are found wanting. Since offshore tax avoidance is an international issue, the effectiveness of the recommendations of some international organisations in preventing the depletion of countries' tax bases are also analysed. / JURISPRUDENCE / LLD

This work entails a study of some of the schemes that are employed by country residents when companies and trusts are used as vehicles for investing in offshore tax-haven and low tax jurisdictions so as to avoid taxes. The study also entails a critical analysis of the effectiveness of the some of the laws in South Africa that curb such offshore tax avoidance schemes. Similar laws in the United Kingdom and in the United States are analysed in order to come up with some recommendations that could be considered for possible reform of the relevant South African laws where they are found wanting. Since offshore tax avoidance is an international issue, the effectiveness of the recommendations of some international organisations in preventing the depletion of countries' tax bases are also analysed. / JURISPRUDENCE / LLD